Nigeria's federal government has moved to regulate the country's scrap metal industry, targeting infrastructure vandalism, unsafe dismantling and unreliable raw material supply for steelmakers. Prince Shuaibu Abubakar Audu, Minister of Steel Development, disclosed the plan at a stakeholders' engagement in Lagos held from 9 to 10 November to validate the proposed Scrap Metal (Collection, Trading, Recycling and Regulation) Regulations, 2026.

The minister, represented by Ime Eprikpo, director of Metallurgical Raw Material Development and Investment Promotion, said the regulations would establish a transparent and sustainable scrap metal value chain supporting industrialisation.

What does the proposed framework contain?

The draft regulations provide five core mechanisms:

• operator licensing across the trade;
• regulation of collection centres;
• transaction traceability;
• safety standards;
• stronger enforcement against illicit trade.

Audu framed scrap metal as a vital raw material for steelmaking and manufacturing, with potential to create jobs, reduce waste and promote a circular economy (an economic model that keeps materials in use rather than discarding them). He warned, however, that poor regulation encouraged infrastructure theft, unsafe dismantling and environmental degradation.

"Our objective is not to suppress legitimate commercial activity," Audu said. "Rather, it is to establish a system in which lawful businesses can operate with greater clarity and confidence, while activities involving stolen materials, unsafe practices or environmental harm are addressed through appropriate regulatory and legal measures."

How will small operators be affected?

The minister assured small-scale operators, many of whom depend on scrap trading for their livelihoods, of a pathway to formalisation with requirements proportionate to their business scale. He urged stakeholders to submit practical recommendations to strengthen the draft regulations and address potential implementation challenges.

Audu expressed particular concern over the theft of electrical cables, railway components, manhole covers and other public infrastructure. He called for stricter supplier verification, improved transaction records and collaboration with security agencies to curb the trade in stolen metals.

Why does the government link scrap to steel growth?

Permanent Secretary Ambassador Nura Abba Rimi, represented by Christopher T. Wanje, director of Metallurgical Inspectorate and Environmental Protection, said the initiative aligned with President Bola Tinubu's Renewed Hope Agenda to build a competitive and self-sustaining steel industry.

He described effective scrap metal regulation as essential to securing raw materials, improving resource efficiency and strengthening local manufacturing.

"Our objective is not to stifle legitimate businesses or discourage investment, but to establish a transparent, accountable and sustainable operating environment in which genuine entrepreneurs can thrive, investors can have confidence, and the steel industry can access reliable raw materials to support increased domestic production and value addition," Rimi said.

Does industry support the regulations?

Comrade Pastor Engr. Ogbu Luke Uchechukwu, National President of the National Association of Scrap and Waste Dealers Employers of Nigeria, described the Lagos engagement as a landmark step towards an organised and economically viable scrap industry.

Dr Innocent Bariate Bariko, Director-General of NESREA (the National Environmental Standards and Regulations Enforcement Agency), represented by Engr. Walter Okoye, welcomed the initiative. He noted that although scrap metal was vital to steel production and the circular economy, poor regulation posed environmental and public health risks.

Private producers also backed the framework. Busari Olanrewaju of Kam Steel Integrated Company Ltd. pledged the company's support through training for scrap collectors, standardised grading, modern sorting and shredding technologies, and increased local utilisation of Nigerian scrap metal.

The validation sessions in Lagos mark the next stage for the 2026 regulations, which now await stakeholder input before implementation across the collection, trading and recycling chain.